Assume the $175,000 piece of equipment you purchased can be sold in five years for $35,000. You will have depreciated the equipment to a book value of zero, so if you sell it for $35,000 you have a tax gain. If your marginal tax rate is 25%, what is the terminal value associated with the disposal of the piece of equipment?

Answer rating: 100% (QA)

he terminal value associated with the disposal of the equipment considers both the ... View the full answer